Micro-enterprises play a critical role in economic growth and innovation but face persistent barriers in accessing formal credit. This study examines the systemic financing constraints micro-enterprises experience within the Swedish financial ecosystem, focusing on the interplay between credit rationing, collateral requirements, and the limitations of monetary policy. Using a quantitative approach, survey data from micro-enterprise owners was analyzed through chisquare tests and cross-tabulations to uncover patterns in loan approvals, sectoral disparities, and the impact of the changes in Sweden’s interest rate policy. The findings reveal that 58.8% of respondents reported worsened credit access due to high collateral demands, while firms in seasonal industries, such as retail and tourism, faced disproportionately higher rejection rates compared to their technology-oriented counterparts.The study integrates these results into a revised framework model, rooted in credit rationing theory, that highlights how systemic barriers perpetuate a cycle of financial exclusion and underperformance among micro-enterprises. Policy implications include adopting alternative credit assessment models using big data, expanding government-backed credit guarantee schemes, and fostering sector-specific financing solutions to alleviate structural inequities. This thesis contributes to the literature by refining the application of credit rationing theory to microenterprises and providing actionable recommendations to bridge the disconnect between monetary policy goals and the realities of small-scale firms in Sweden. Future research should explore longitudinal impacts of these interventions and comparative analyses across Nordic economies.